Whitpain businessman to serve probation for failing to remit sales taxes to state

COURTHOUSE — A Whitpain man who once owned a Dresher salad restaurant faces court supervision after he admitted that he failed to remit to the state more than $84,000 in sales taxes that the business collected.

David F. Garvey, 45, of the 1600 block of Larchwood Drive, was sentenced in Montgomery County Court on Tuesday to seven years of probation after he pleaded guilty to 20 counts of theft by failure to make required disposition of funds received in connection with incidents that occurred between October 2008 and July 2010 while he was the owner and operator of a Saladworks franchise in Dresher.

Judge Joseph A. Smyth also ordered Garvey to pay $69,286 in remaining restitution to the Pennsylvania Department of Revenue.

With the charges, the Pennsylvania Attorney General’s Office alleged Garvey “intentionally dealt with the property obtained as his own and failed to make the required payment or disposition to the Department of Revenue,” which he knew he was required to do.

According to the criminal complaint, Garvey neglected to remit a total of $84,286 in collected sales tax to the state. Garvey, according to court papers, purchased the business in May 2008.

Defense lawyer Gregory DiPippo previously said there’s no evidence Garvey used any of the money for personal use. The money went back into the operation of the business, DiPippo said previously.

DiPippo said the sales tax was collected and what made it a crime was that it was not turned over to the state when it became due. DiPippo previously characterized the incident as “more of a financial disaster” and said “it wasn’t any criminal mastermind plan.”

Prior to being arrested, Garvey had already stopped operating the business.

Court papers indicate an investigation of Garvey, by the state Department of Revenue, Bureau of Criminal Tax Investigations, began in July 2010. During several contacts with Garvey, according to court papers, state agents requested payment for the tax liability but Garvey allegedly told agents “that he was going to pay the sales tax liability but did not have the money right now.”